Correlation Between Artemis Strategic and Alpha Bank

Can any of the company-specific risk be diversified away by investing in both Artemis Strategic and Alpha Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Artemis Strategic and Alpha Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artemis Strategic Investment and Alpha Bank SA, you can compare the effects of market volatilities on Artemis Strategic and Alpha Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Artemis Strategic with a short position of Alpha Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Strategic and Alpha Bank.

Diversification Opportunities for Artemis Strategic and Alpha Bank

-0.6

Correlation Coefficient

Artemis Strategic  Alpha Bank

Excellent diversification

The 3 months correlation between Artemis and Alpha is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Strategic Investment and Alpha Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Bank SA and Artemis Strategic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Artemis Strategic Investment are associated (or correlated) with Alpha Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Bank SA has no effect on the direction of Artemis Strategic i.e., Artemis Strategic and Alpha Bank go up and down completely randomly.

Pair Corralation between Artemis Strategic and Alpha Bank

If you would invest  39.00  in Alpha Bank SA on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Alpha Bank SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Artemis Strategic Investment  vs.  Alpha Bank SA

Artemis Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artemis Strategic Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Artemis Strategic is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Alpha Bank SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Bank SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward-looking signals, Alpha Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artemis Strategic and Alpha Bank

The main advantage of trading using opposite Artemis Strategic and Alpha Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Strategic position performs unexpectedly, Alpha Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alpha Bank will offset losses from the drop in Alpha Bank's long position.

The idea behind Artemis Strategic Investment and Alpha Bank SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.